Opinion- Handshake diplomacy: Trump, Xi, and the truce

In the shadow of South Korea's bustling APEC summit, Presidents Donald Trump and Xi Jinping sat down on October 30 in Busan for their first face-to-face talks in six years. It was a meeting that cut through the bluster of recent months, when tariffs soared and supply chains frayed.
Trump called it 'amazing,' rating it a 12 out of 10. Xi struck a measured note, saying the two nations should be 'partners and friends.' Amid handshakes at Gimhae Air Base, they hashed out real issues: tariffs, soybeans, fentanyl precursors, and rare earth minerals. For a world weary of economic brinkmanship, this felt like a pause, not a panacea.
Let's be clear about the stakes. Trump returned to office vowing to shield American workers from what he sees as unfair Chinese competition. Tariffs on Chinese goods had climbed to 57 per cent, layered on top of fentanyl-related penalties. China hit back with restrictions on rare earth exports, those obscure minerals vital for everything from iPhones to fighter jets.
American farmers watched soybean sales plummet as Beijing turned to Brazil and Argentina. Global markets jittered, with supply chains from Detroit to Dongguan straining under the weight. Then came Busan: Trump announced an immediate tariff cut to 47 per cent. China pledged to resume 'tremendous' soybean purchases right away. Fentanyl tariffs drop to 10 per cent from 20, with Xi committing to crack down on precursor chemicals. And rare earths? A one-year deal to keep exports steady, averting a crisis in tech manufacturing.
These are practical wins. Lower tariffs mean cheaper electronics and clothes for US families, a small relief from inflation's bite. Chinese exporters regain US market access, steadying factories in Guangdong. Farmers in Iowa get breathing room after years of pain.
On fentanyl, the crisis killing tens of thousands of Americans yearly, Xi's pledge could save lives if enforced. Rare earth stability reassures Silicon Valley and Shenzhen alike, fuelling innovation in EVs and AI without hoarding panic. Trump even floated Nvidia chip talks and a trip to China in April, with Xi possibly following. It's the kind of deal-making Trump loves: tangible, quick, and braggable.
But step back, and the bigger picture emerges. The US and China account for 43 per cent of global GDP. Their rivalry defines our era, from Taiwan straits to tech dominance. Taiwan didn't come up today, Trump noted, but it looms. Chip curbs persist; broader tech decoupling rolls on. This is crisis management, not a reset. Both men need it. Trump faces domestic gridlock and wants victories to tout. Xi, post his party plenum, seeks stability for China's sluggish recovery. Markets rallied briefly on the news, Asia-Pacific indices steadying, but volatility lingers. Investors know these truces can unravel.
Think about the ripple effects. Stable US-China trade eases pressure on everyone else. Europe dodges higher input costs; Southeast Asia's factories hum with intermediate goods flowing freely. The Global South, from Brazil's soy fields to Pakistan's textile mills, benefits from calmer commodity prices and fewer disruptions.
Even Ukraine surfaced, with Trump saying they'll 'work together' on it. That's faint, but notable in a divided world. Yet challenges persist. Implementation demands trust, scarce between Washington and Beijing. US hawks grumble about concessions; Chinese nationalists decry yielding to pressure. Personal chemistry helped today, Trump escorting Xi to his car, but diplomacy is fickle.
What does this say about global order? Power abhors a vacuum, but it also craves predictability. Trump's style, blunt and transactional, meshed with Xi's long-game patience. They avoided escalation, buying time. For the West, it's a reminder: compete fiercely, but manage the competition. Blind decoupling risks self-harm; pure confrontation invites chaos.
China won't liberalise, but pragmatic engagement yields results. Look at history. Nixon's 1972 breakthrough reshaped the Cold War. Today's Busan handshake won't end the rivalry, but it keeps channels open.
The world exhaled a bit today. Two leaders from different systems found common ground on pocketbook issues. If they build on it, 2026 could see steadier growth. If not, we're back to tariffs and tension. Leadership means choosing pragmatism over posturing. Trump and Xi did that in Busan. The rest of us should take note.